The release of the “Hinman documents” in the US Securities and Exchange Commission (SEC) lawsuit against Ripple could boost Ethereum (ETH) and trigger a move to become more diversified in the cryptocurrency market. is high, JPMorgan Chase said in a June 15 research report.
Emails related to a 2018 speech in which former SEC corporate finance director William Hinman said Ethereum doesn’t seem like a security were released last June 13 as a defense to Ripple’s lawsuit. was published on
SEC officials did not classify Ethereum as a security in 2018, the report noted, adding that “the fact that tokens on a well-decentralized network are no longer securities raises a regulatory gap. I will create it,” he said.
“The talk acknowledges that there are other categories,” said JPMorgan analysts led by Nikolaos Panigirtzoglou, adding that “control (at least in the Howey sense) It is not a security because there is no public group, but it may need regulation to protect the purchaser.”
Panigistsoglou refers to the Howey test, which is used to determine which transactions qualify as investment contracts and are subject to federal securities laws. An asset is classified as a security when it invests money in a common enterprise and expects a return from the efforts of others.
According to JP Morgan, these facts could explain why regulators have targeted other crypto assets this year but taken no action against Ethereum.
“The Hinman dossier will likely influence the direction of current U.S. Congress efforts to regulate the cryptocurrency industry in a way that avoids Ethereum being designated as a security,” the analyst wrote. ing.
The easiest solution for Congress would be to put Ethereum in the same category as Bitcoin (BTC) and regulate it as a commodity under the supervision of the Commodity Futures Trading Commission (CFTC).
It could also introduce a new “other category” dedicated to Ethereum and other crypto assets that are decentralized enough to avoid being classified as securities, the bank said. The more you hold, the more likely you are to avoid being designated as a security.”
The Hinman dossier will likely intensify the race among major cryptocurrencies to become more decentralized and look more like Ethereum, the report says.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: William Hinman (Nikhilesh De/CoinDesk)
｜Original: Hinman Documents Release in SEC-Ripple Case Is a Boost to Ether: JPMorgan